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Content Delivery Networks, Amazon S3, etc.

 I am helping a startup company to build and maintain their IT infrastructure. 
The core business of this company is to provide customers with 
opportunity to build online multimedia albums with lots of photo and 
So, it is very important to minimize website response time. 
Datacenter is located in Boston and as company grows they are looking 
to improve response time for customers from west coast and across the 

We are looking at several possible ways of doing it: 

1. Build 2 additional hosting locations: one in West coast and one in 
London and serve content based on customer's geolocation 
2. Use Content delivery network, like Akamai 
3. Use outsourced storage ( Amazon S3 ) for pictures, videos and other 
large files. Amazon S3 also distributing content across multiple 
datacenters providing 
     decent response time from any geolocation 

I really like the idea of using Amazon S3, but this service is not 
really cost effective if you have a lot of traffic  (>10 TB/month) 
Akamai CDN is not cheap either. 

So I am curious what other small companies with limited budgets are 
using in similar situations ? 


- Eugene 

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